Abstract

The main objective of this article is to explore the causes of household electricity poverty in Spain from an innovative perspective. Based on evidence of energy inequality across households with different income levels, a quantile regression approach was used to better capture the heterogeneity of determinants of energy poverty across different levels of electricity expenditure. The results illustrate some interesting and counter-intuitive findings about the relationship between household income and electricity poverty, and the technical efficiency of quantile regression compared to the imprecise results of a standard single coefficient/OLS approach.

Highlights

  • Energy poverty and vulnerability are critical issues

  • In the particular case of Spain, where a long and serious economic crisis have greatly deteriorated living conditions for millions of people, some recent reports have warned about the extent of this problem [1], urging politicians and energy companies to take an active role in the debate

  • The main objective of this article is to explore the causes of household electricity poverty in Spain, with a special focus on the impact of household income levels on electricity power expenditure

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Summary

Introduction

Energy poverty and vulnerability are critical issues. According to current research, the problem is extensive and even severe in many countries. In the particular case of Spain, where a long and serious economic crisis have greatly deteriorated living conditions for millions of people, some recent reports have warned about the extent of this problem [1], urging politicians and energy companies to take an active role in the debate. The average value of energy household spending is not of real interest if different levels of energy consumption are caused, affected or reversed by different factors with different intensity. In this context, electricity poverty, understood as an extreme value of energy relative expenditure, deserves particular attention. Lessons learnt from empirical studies that aimed to explain electricity household consumption as a whole, might not be extrapolated to the poorest households and are not of particular interest when it comes to determining how to tackle electricity poverty at the household level

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